You are here » Home » Companies » Company Overview » Suryalakshmi Cotton Mills Ltd

Suryalakshmi Cotton Mills Ltd.

BSE: 521200 Sector: Industrials
NSE: SURYALAXMI ISIN Code: INE713B01026
BSE 00:00 | 14 Aug 17.25 0.15
(0.88%)
OPEN

17.00

HIGH

17.95

LOW

17.00

NSE 00:00 | 14 Aug 17.20 0.15
(0.88%)
OPEN

17.15

HIGH

17.75

LOW

17.15

OPEN 17.00
PREVIOUS CLOSE 17.10
VOLUME 4759
52-Week high 27.10
52-Week low 12.75
P/E
Mkt Cap.(Rs cr) 29
Buy Price 17.10
Buy Qty 295.00
Sell Price 17.95
Sell Qty 490.00
OPEN 17.00
CLOSE 17.10
VOLUME 4759
52-Week high 27.10
52-Week low 12.75
P/E
Mkt Cap.(Rs cr) 29
Buy Price 17.10
Buy Qty 295.00
Sell Price 17.95
Sell Qty 490.00

Suryalakshmi Cotton Mills Ltd. (SURYALAXMI) - Chairman Speech

Company chairman speech

Dear Shareholders

At Suryalakshmi our endeavour has always been to retain long-term value to resist complacency and to strive for a better tomorrow. However we are disappointed to have broken our legacy of uninterrupted growth.

The year that went by was without question a very challenging year in many respects. On global prospects two of the largest economies in the world the US and China were engaged in trade war having major impact on the global trade. Moreover the global economic growth was hampered by geopolitical uncertainties in some countries slower than expected growth rate in developed economies vulnerability to volatile capital inflows in emerging markets and oil price fluctuations.

However the Indian economy remained one of the least affected economies from these global uncertainties. However the several factors on domestic front like muted growth in agricultural sector widening fiscal deficit slowdown in consumption especially in the rural areas tepid increase in investments and muted exports did affect the GDP of the country. The subdued growth of 6.8% for FY19 with a low of 5.8% in Q4 reflected the weak investment sentiments. Nevertheless the country continues to emerge as the fastest growing major economy and notched 23 places up to reach 77th position in World Bank's Ease of Doing Business 2018.

The textile industry holds a vital position in the Indian economy contributing significantly in the export earnings. Over the years the industry has experienced challenges in the domestic as well as exports market post GST implementation and demonetisation. The after-effects of demonetisation are yet to stabilise for our sector as there is an imbalance seen in the dynamics of domestic supply vis--vis demand.

The growth in textile and apparel market has been slower and Denim market has been affected by the excess capacity in the industry. The Garment Industry is facing the problem of cheaper imports from neighboring countries of late. Recently the denim manufacturers have been focussing more on sustainability in order to tackle environmental issues. In my view the most devastating situation in the long-term is the fact that carbon emissions continue to rise worldwide and that the exploitation of our ecosystems continues to progress. In the given market environment our resilience has allowed us to ride through several tough business cycles in the past and we will do the same again. We have been proactively positioning ourselves through significant capital investment into our people customer experience our brand information systems supply chain and distribution centre to retain our market position despite slowdown in financial parameters. We have also revised our strategies that will enable us to resume our growth trajectory create value for our customers provide healthy returns on equity and reduce our environmental footprints. Our facilities are being upgraded to remain at the forefront of technology while investing to expand capacities and backward integration of key inputs. This will enable us to stay competitive in tough market conditions as well as empower us to deliver high-quality cost competitive products. We are continuously investing in R&D as well to aptly deal with the trends in the fashion industry. Towards that end we are also joining hands with leading designers from Europe and Asia.

At Suryalakshmi we are privileged to have an experienced and diversely skilled leadership team which is passionately engaged in the business whose wisdom and insights will help us not only to achieve our short-term performance objectives but also to realise our vision to become a global leader and preferred partner in textile manufacturing.

You will observe the company's results have been adversely affected by the workers' agitation at Denim Division which resulted in a lockout lasting for well over 4 months. I am happy to report that the lockout has since been lifted and we are now working with renewed vigour to make up for the lost time.

As we look to FY 2020 and beyond one thing that's certain is change. We are committed to grow our business in the domestic market as well as in newer geographies globally. External factors have set us back but we are taking a long-term view and are determined to exploit the opportunities that exist to our advantage. Going forward we see opportunities for us to perform better regain market share and continue our historical growth path.

Lastly I am thankful for the loyalty of our customers the trust of our shareholders and the passion of our people. I also thank my fellow Board members for their continuous support and we all look forward to building a brighter FY 2020.

Regards

L N Agarwal

Chairman